Business Context and Reporting Period
This Form 8-K Current Report was filed by Conseco, Inc. (Note: The metadata references CNO Financial Group, Inc., but the filing text identifies the registrant as Conseco, Inc.) on June 12, 2007. The report details the closing of an amendment to the Company's senior secured credit facility.
Key Financial Metrics and Debt Structure
The filing focuses on debt restructuring rather than operational financial performance metrics such as revenue or profit. Key debt-related figures include:
- Principal Amount Increase: The senior secured credit facility principal was increased from approximately $672 million to $872 million.
- Restricted Payments Basket: The general basket for restricted payments was increased to $200 million for the fiscal year commencing June 12, 2007, and $300 million thereafter.
- Expansion Capacity: The Company may request up to two new facilities or increases totaling up to $330 million, subject to financial covenants.
- Interest and Maturity: No changes were made to the interest rate or maturity schedule.
The filing text does not provide clear values for revenue, net income, operating cash flow, or current liquidity ratios.
Material Changes Versus Prior Period
The primary material change is the expansion of the Company's borrowing capacity. The principal amount of the credit facility increased by $200 million (from $672 million to $872 million). Additionally, the flexibility for restricted payments and future facility expansions was enhanced compared to the prior agreement terms.
Guidance, Outlook, and Risks
Management Commentary: The Company closed the amendment to its senior secured credit facility as previously announced. The amendment allows for future expansion of credit commitments between June 12, 2007, and June 12, 2008, limited to $130 million initially.
Conditions and Risks: Any future increases in the credit facility or new facilities are subject to compliance with certain financial covenants and other conditions. The filing incorporates by reference the full text of Amendment No. 1 to the Second Amended and Restated Credit Agreement for complete terms.
Important Facts for Investor Verification
- Verify the specific financial covenants required to access the additional $330 million in potential credit expansion.
- Confirm the identity of the registrant, as the filing text lists "Conseco, Inc." while external metadata may reference "CNO Financial Group, Inc."
- Review the full text of Amendment No. 1 (Exhibit 10.1) for detailed terms regarding the restricted payments basket and usage of funds.
- Check the Company's Annual Report on Form 10-K for the year ended December 31, 2006, for historical context on the credit facility (referenced in footnote 7).